Rates will remain below about $11,000 a day for the rest of the year, compared with a breakeven point of about $23,000, according to Johnson Leung, head of regional transport at Jefferies Group Inc. in Hong Kong.
Slipping scrap makes buyers skittish
Even with Turkish buying and reasonable U.S. demand, they heard shred was $440/t this wk from a peak $520/t in Jan. as “prices were just too high” and buyers had rebuilt inventory. Chinese new year’s typical pause may be part of the weakness, but spot met coal also seemed eager to slip once it was clear Australia ports were spared the brunt of the recent cyclone. Scrap is often a leading steel price indicator.
The struggle to find “good fit” suppliers never ends. And finding the right suppliers has never been more important than right now. The global recession has put many companies’ very survival at stake.
How do you make sure – really sure – that your supplier is capable of going the distance providing you with the price, quality and service that your company and your customers demand?
Well, you could take the sales rep’s word for it. But we strongly suggest you see for yourself.
Simple as it sounds, an actual tour is the best way to gather reliable information about your supplier‘s all-important cost drivers, quality commitment and service culture.
From aluminum to copper, prices of almost all metals have been in decline since the beginning of the year, plagued by stocks and surpluses. But two of them have moved in the opposite direction: lead and zinc prices are on the rise, a trend that is unique among metals.
70% of worldwide lead comes from batteries recycling. Since the financial crisis and the impact it had on western countries new car sales, recycled lead quantities have dropped. At the same time, production of primary lead also decreased.
The International Lead and Zinc Study Group expects that there will be a small 22,000 tonnes surplus in the global market for refined lead metal in 2013. In 2014, the market is expected to be in deficit for the first time since 2009 with the extent of the shortage estimated at 23,000 tonnes.
Nickel prices fell to a four-year low, in the latest fallout from slowing economic growth in China, the metal’s biggest user. Nickel prices are bearing the brunt of a steep decline in metals markets this year.
Nickel futures fell as low as $13,205 a metric ton Tuesday on the London Metal Exchange, its lowest price since May 2009, and ended the day down 0.8%, at $13,325. Prices have dropped 22% since the start of the year.
Steel prices across the globe continued trending downwards in May. Selling figures declined in twenty four of the twenty eight nations in which MEPS conducts research. In the remaining four countries, transaction values were stable.
Excess steel supply and poor demand are expected to continue to exert negative pressure on prices in the short term. Moreover, input expenditure is likely to remain at a low level in the immediate future.
A nickel glut has forced down the price by nearly about 50 percent since 2011, according to a recent Reuters report.
US hot rolled coil transaction figures slipped further in June, as was expected. There is still domestic overcapacity, despite the demise of RG Steel. Delivery lead times have shrunk and local mills are facing severe competition from attractively priced Russian coil now standing at the docks. Buyers are expecting a further decrease for the summer.
Hot rolled plate transaction figures declined again in June for a number of reasons.
MEPS predicts that its World Composite Steel Price will rise by approximately 11.5 percent by mid 2012. The most significant gains are anticipated in the flat products segment as prices rally after the substantial reductions in the second half of last year.
The steel price revival was led by the changing market situation in North America as scrap prices surged at the end of 2011. The prospect of higher raw material costs also pushed up steel selling values recently in Asia and Europe.
Over the past few weeks, nickel prices have escalated by 10 percent. Chromium prices are expected to follow a similar pattern. Scrap costs are increasing. These factors are predicted to lead to stock replenishment by both distributors and end users as they attempt to buy ahead of higher stainless steel prices resulting from rising mill input costs.
MEPS forecasts that its benchmark, type 304, cold rolled Stainless Steel World Price will increase by $US850 per tonne over the next six months. The gain is expected to be driven by a combination of rising input costs and inventory building in the supply chains around the world